Supplemental Equity and Comprehensive Income Information

9 Months Ended

Sep. 30, 2013

Supplemental Equity and Comprehensive Income Information

Supplemental Equity and Comprehensive Income Information

NOTE 4. Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended September 30, 2013				3M Company Shareholders
(Millions)		Total		Common Stock and Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehen-sive Income (Loss)		Non-controlling Interest
Balance at June 30, 2013		$	18,319	$	4,252	$	31,716	$	(12,926)	$	(5,166)	$	443
Net income			1,245				1,230						15
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			284								286		(2)
Defined benefit pension and post-retirement
	plans adjustment		92								92		―
Debt and equity securities - unrealized gain (loss)			2								2		―
Cash flow hedging instruments - unrealized
	gain (loss)		(24)								(24)		―
Total other comprehensive income (loss), net
	of tax		354
Dividends paid			(431)				(431)
Stock-based compensation, net of tax impacts			66		66
Reacquired stock			(1,570)						(1,570)
Issuances pursuant to stock option and
	benefit plans		269				(103)		372
Balance at September 30, 2013		$	18,252	$	4,318	$	32,412	$	(14,124)	$	(4,810)	$	456
Nine months ended September 30, 2013				3M Company Shareholders
(Millions)		Total		Common Stock and Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehen-sive Income (Loss)		Non-controlling Interest
Balance at December 31, 2012		$	18,040	$	4,053	$	30,679	$	(12,407)	$	(4,750)	$	465
Net income			3,605				3,556						49
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			(393)								(334)		(59)
Defined benefit pension and post-retirement
	plans adjustment		268								268		―
Debt and equity securities - unrealized gain (loss)			(2)								(2)		―
Cash flow hedging instruments - unrealized
	gain (loss)		8								8		―
Total other comprehensive income (loss),
	net of tax		(119)
Dividends paid			(1,307)				(1,307)
Sale of subsidiary shares			8		7								1
Stock-based compensation, net of tax impacts			258		258
Reacquired stock			(3,609)						(3,609)
Issuances pursuant to stock option and
	benefit plans		1,376				(516)		1,892
Balance at September 30, 2013		$	18,252	$	4,318	$	32,412	$	(14,124)	$	(4,810)	$	456

Three months ended September 30, 2012				3M Company Shareholders
(Millions)		Total		Common Stock and Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehen-sive Income (Loss)		Non-controlling Interest
Balance at June 30, 2012		$	16,873	$	3,963	$	29,465	$	(12,010)	$	(5,012)	$	467
Net income			1,180				1,161						19
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			412								401		11
Defined benefit pension and post-retirement
	plans adjustment		96								96		―
Debt and equity securities - unrealized gain (loss)			3								3		―
Cash flow hedging instruments - unrealized
	gain (loss)		(36)								(36)		―
Total other comprehensive income (loss), net
	of tax		475
Dividends paid			(408)				(408)
Stock-based compensation, net of tax impacts			44		44
Reacquired stock			(316)						(316)
Issuances pursuant to stock option and
	benefit plans		293				(68)		361
Balance at September 30, 2012		$	18,141	$	4,007	$	30,150	$	(11,965)	$	(4,548)	$	497
Nine months ended September 30, 2012				3M Company Shareholders
(Millions)		Total		Common Stock and Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehen-sive Income (Loss)		Non-controlling Interest
Balance at December 31, 2011		$	15,862	$	3,776	$	28,348	$	(11,679)	$	(5,025)	$	442
Net income			3,507				3,453						54
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			211								210		1
Defined benefit pension and post-retirement
	plans adjustment		291								291		―
Debt and equity securities - unrealized gain (loss)			4								4		―
Cash flow hedging instruments - unrealized
	gain (loss)		(28)								(28)		―
Total other comprehensive income (loss),
	net of tax		478
Dividends paid			(1,228)				(1,228)
Stock-based compensation, net of tax impacts			231		231
Reacquired stock			(1,483)						(1,483)
Issuances pursuant to stock option and
	benefit plans		774				(423)		1,197
Balance at September 30, 2012		$	18,141	$	4,007	$	30,150	$	(11,965)	$	(4,548)	$	497

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component
Three months ended September 30, 2013
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at June 30, 2013, net of tax		$	(390)	$	(4,779)	$	(6)	$	9	$	(5,166)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		240		―		3		20		263
	Amounts reclassified out		―		144		―		(58)		86
Total other comprehensive income (loss),
	before tax		240		144		3		(38)		349
Tax effect			46		(52)		(1)		14		7
Total other comprehensive income (loss),
	net of tax		286		92		2		(24)		356
Balance at September 30, 2013, net of tax		$	(104)	$	(4,687)	$	(4)	$	(15)	$	(4,810)
Nine months ended September 30, 2013
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at December 31, 2012, net of tax		$	230	$	(4,955)	$	(2)	$	(23)	$	(4,750)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		(344)		―		(3)		(92)		(439)
	Amounts reclassified out		―		431		―		104		535
Total other comprehensive income (loss),
	before tax		(344)		431		(3)		12		96
Tax effect			10		(163)		1		(4)		(156)
Total other comprehensive income (loss),
	net of tax		(334)		268		(2)		8		(60)
Balance at September 30, 2013, net of tax		$	(104)	$	(4,687)	$	(4)	$	(15)	$	(4,810)

Three months ended September 30, 2012
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at June 30, 2012, net of tax		$	(77)	$	(4,960)	$	(5)	$	30	$	(5,012)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		380		―		4		21		405
	Amounts reclassified out		―		153		―		(78)		75
Total other comprehensive income (loss),
	before tax		380		153		4		(57)		480
Tax effect			21		(57)		(1)		21		(16)
Total other comprehensive income (loss),
	net of tax		401		96		3		(36)		464
Balance at September 30, 2012, net of tax		$	324	$	(4,864)	$	(2)	$	(6)	$	(4,548)
Nine months ended September 30, 2012
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at December 31, 2011, net of tax		$	114	$	(5,155)	$	(6)	$	22	$	(5,025)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		211		―		5		22		238
	Amounts reclassified out		―		460		1		(66)		395
Total other comprehensive income (loss),
	before tax		211		460		6		(44)		633
Tax effect			(1)		(169)		(2)		16		(156)
Total other comprehensive income (loss),
	net of tax		210		291		4		(28)		477
Balance at September 30, 2012, net of tax		$	324	$	(4,864)	$	(2)	$	(6)	$	(4,548)

Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions.Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income.

Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M
			Amount Reclassified from
			Accumulated Other Comprehensive Income
(Millions)		Three months ended Sept. 30,				Nine months ended Sept. 30,				Location on Income Statement
Details about Accumulated Other Comprehensive Income Components		2013		2012		2013		2012
Gains (losses) associated with, defined benefit pension and postretirement plans amortization
	Transition asset	$	―	$	―	$	1	$	1	See Note 8
	Prior service benefit		19		21		59		63	See Note 8
	Net actuarial loss		(163)		(174)		(491)		(524)	See Note 8
Total before tax			(144)		(153)		(431)		(460)
Tax effect			52		57		163		169	Provision for income taxes
Net of tax		$	(92)	$	(96)	$	(268)	$	(291)
Debt and equity security gains (losses)
	Sales or impairments of securities	$	―	$	―	$	―	$	(1)	Selling, general and administrative expenses
Total before tax			―		―		―		(1)
Tax effect			―		―		―		―	Provision for income taxes
Net of tax		$	―	$	―	$	―	$	(1)
Cash flow hedging instruments gains (losses)
	Foreign currency forward/option contracts	$	1	$	22	$	(8)	$	31	Cost of sales
	Foreign currency forward contracts		59		58		(94)		45	Interest expense
	Commodity price swap contracts		(1)		(1)		(1)		(9)	Cost of sales
	Interest rate swap contracts		(1)		(1)		(1)		(1)	Interest expense
Total before tax			58		78		(104)		66
Tax effect			(20)		(29)		38		(25)	Provision for income taxes
Net of tax		$	38	$	49	$	(66)	$	41
Total reclassifications for the period, net of tax		$	(54)	$	(47)	$	(334)	$	(251)

Sale of Subsidiary Shares

In March 2013, 3M sold shares in 3M India Limited, a subsidiary of the Company, in return for $8 million. The noncontrolling interest shares of this subsidiary trade on a public exchange in India. This sale of shares complied with an amendment to Indian securities regulations that required 3M India Limited, as a listed company, to achieve a minimum public shareholding of at least 25 percent. As a result of this transaction, 3M's ownership in 3M India Limited was reduced from 76 percent to 75 percent. The $8 million received in the first quarter of 2013 was classified as other financing activity in the consolidated statement of cash flows. Because the Company retained its controlling interest, the sales resulted in an increase in 3M Company shareholder's equity of $7 million and an increase in noncontrolling interest of $1 million.